Suncor Energy Inc, BCE Inc. and 26 Stock Top Picks and 3 ETF (Archive From Sep 06-12)
This week there were 26 Stock Top Picks and 3 ETF in a wide range of industries: Financials, ETF, Healthcare, Technology, Consumer, Industrials, Basic Materials, Energy and Telecommunications.
Here are this week’s Top Picks as selected by: Cameron Hurst, Stan Wong, Stephen Takacsy, Mike S. Newton, Michael Sprung, John Zechner, Darren Sissons,Elliott Fishman, Hap Sneddon and Christine Poole.
Rumours of the demise of real estate have been greatly exaggerated. If you believe interest rates may pause as the economy slows, this will be a good life jacket for your portfolio. He thinks this is the right time to get in as many others are getting out. It has a broad diversification of holdings.
American Tower (AMT-N)
This has the cell towers and fiber-optic networks that are going through all US cities. He is more attracted to the bonds than to the stocks, because it is a highly leveraged company. They are on the edge of investment grade, so a downturn could hurt. Demand for speed and 5G is coming and is…
Canadian Imperial Bank of Commerce (CM-T)
Is it cheap? Of all the big banks, CM-T is at very good value. It has the highest yield of the majors. The concern may be their exposure to Canadian housing markets -- they lack some of the international diversification. This is one of his largest holdings in the financial space.
Prudential PLC (PUK-N)
(Market Call Minute.) Likes the outlook for life insurance companies with rising interest rates. Based in England, but was still benefit from that.
Fairfax Financial (FFH-T)
Will it break out of the trading range of $5.50-7.70? You're buying Prem Watsa when you buy this. Prem has done some brilliant things, and other things that weren't. He's not Warren Buffett, though. He's not attracted to the underlying businesses.
(A Past Pick July 31/14. Down 7.72%.) Gold took off in June and then flat lined July and August. This was followed by the parabolic rise in the US$, which crushed all commodities. This looked like it was forming a long-term basing pattern. The bad news is that the seasonal period for gold is coming…
iShares DJ Medical Devices E.T.F. (IHI-N)
(A Top Pick Jan 11/18, Up 8%) Likes it. There are really two robust parts of the healtcare sector, one is this one, medical devices and equipment, and the other is managed care. You are buying market beta here; if the market goes down, IHI is going down. They might be high quality and good…
Vanguard Mega Cap Value Index Fund ETF (MGV-N)
Has a lot of financials and healthcare including Berkshire Hathaway, JPM and Exxon among 300 names. 0.70% MER. A good way to play value stocks, and it does okay in a non-value environment. He bought it yesterday.
He thinks the worst of the drugs going off patent is over. These guys have been really hurt by their patent cliff. It is a really good value name. He sees resistance at $67. It is a good sector to be in. (Analysts’ target: $68.79).
Pfizer Inc (PFE-N)
It is a safe dividend play. He looks at total return so dividends are important but recommends you don’t get caught in a dividend trap where there is capital at risk. A lot of dividend payers have moved their valuations to historical high levels. You have to be careful.
Illumina Inc. (ILMN-Q)
Dominant player in gene sequencing business. Becoming more commercially available to clinics instead of just research labs. They are buying up some of their customers and going into competition with them. He is nervous of the valuation. It is at and beyond his expectations.
Abbott Labs (ABT-N)
She continues to hold it and likes it. They have done well this year so she would wait for a pull back to add to this position. They are good at taking costs out. They always increase their dividend and it should continue. A good core holding.
Online leader in dating space, owning the top 4 sites in North America. Subscription based online dating sites. 44 brands around the world, in 190 countries. Half their revenues come from the US. Asia is one of its largest markets. Meeting online has surpassed meeting through friends. 17% growth rate. A bit of a premium.…
Baylin Technologies (BYL-T)
(A Top Pick Jan 29/18, Down 4%) It has become his largest position, making it 5% of the company. They are going to benefit from a huge amount of infrastructure spending over the next 25 years. They are supplying WiFi networks also. They made two transformative acquisitions last year and they should see benefits this…
Nice Ltd. (NICE-Q)
They oversee customer payments and surveillance in that area. Low volatility and great metrics. Reminds him of Roper. (Analysts’ price target is $156.25)
Open Text (OTEX-T)
If you bought it as a trade, you might want to take some profits. But technically, there's nothing he can point to that says sell it.
Corning Inc (GLW-N)
This is really a technology company in glass. They made their name in fiber-optic cables during the .com era, and when that fell apart, their glass business took off. They make gorilla glass for iPhones and high end TVs. The company is sitting with a cash pile and have been buying back stock. This remains…
The only other publicly traded company other than ADW.A-T in wine. Legislation in Ontario allows wine to be sold in grocery stores. This is going to grow significantly. But DWS-X also sells most of their production to a Chinese exporter. It has higher growth potential than Brick Brewing (BRB-T). (Analysts’ target: $0.40).
Goodfood Market Corp. (FOOD-T)
They have about 40% of the market. They disclosed there are up to 31k subscribers. They just went public in June. They are full of cash and now increasing their distribution facility in Montreal 10 fold. They will open a facility out west next year. It would make sense for a large grocer to acquire…
British American Tobacco (BTI-N)
British American Tobacco. Some people don’t believe in buying alcohol or tobacco. It will recover at the same pace as others.
Unilever NV (UN-N)
A great story and not an expensive stock. Trading at about 17X earnings. Has a 4.2% dividend yield. What they has done, that a lot of other companies have not done, is to restructure their assets. They’ve looked at their brands and their global businesses and made some very structural changes that are very important.
The volatility arose because China will have an issue with them. Mind you, there's only FedEx and UPS in this space. FedEx has been helped by the rise of e-commerce and will continue to benefit from that at times like Christmas. FedEx will also enjoy growth abroad. A caveat: This is a costly business/industry, though…
🛢 Basic Materials
He is bullish on a trade resolution. It ranks in the top 5% of all stocks. 0.7 times book, 7 time PE. They are still able to generate cash flow. It is a bit volatile but has improving price momentum. It has turned the corner. (Analysts’ price target is $9.59)
Teck Resources Ltd. (B) (TECK.B-T)
He is not a resource bull normally, but he likes restructuring themes. The base metals area has been unloved and under owned for a long time. Lows on the sector have been increasing since 2015. This group is set up to do quite well. He prefers RIO-T. The risk reward is very, very good. TECH.B-T…
The weighting of energy on the TSX from the low-30s% to 18% and SU makes up a big part of that 18%. SU has been the go-to Canadian oil stock. You can make money on SU, but there are less risky stocks out there.
Baytex Energy Corp (BTE-T)
Not a fan. Debt level is high at 69%. Narrowing differentials is helping. Management increased its pay package, even though stock is on sale at 2 for 1. This isn't right. When you get your proxy, take a stand and make your vote count.
Pembina Pipeline Corp (PPL-T)
He sold it a year ago because it got fully valued. They've made some good acquisitions. Now, it's fully valued. Hold.
Technology infrastructure. Cost is actually going down. Franchise value. Sports' emotion gets played out in the stock market. Likes it as a core holding, great dividend, stable, extremely well managed. All this is really hard to replicate. With patience, great long-term rate of return.
Rogers Communications (B) (RCI.B-T)
He's not fond of all the telcos. Rogers' valuation is trading at historic highs. Bond proxies like this have run up lately.
This post summarizes the top picks weekly. The previous week’s stock picks list is available for an additional week using the link below. Refer to Daily Top Picks available in the All Top Picks pages to browse the all-time top picks archive.
Use this list wisely to identify buying opportunities.
Happy trading !!!